#EU New Regulations Boost Euro Stablecoin Development#
Hot Topic Overview
Overview
The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. JPMorgan believes that MiCA's requirement for stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses will give compliant stablecoins, such as Circle's EURC, an advantage in the regulated market, while posing challenges for non-compliant stablecoins like Tether's EURT. Tether has discontinued its EURT stablecoin and delisted it from several EU exchanges, but it still dominates the Asian market. Tether has also invested in MiCA-compliant stablecoin issuers, indicating its commitment to maintaining a presence in the EU market.
Ace Hot Topic Analysis
Analysis
The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will encourage EU exchanges to adjust their offerings and favor compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins, like Tether, face challenges, as evidenced by Tether's discontinuation of its EURT stablecoin and delisting from multiple EU exchanges. Although Tether remains a "dominant force" in the global stablecoin market, it is widely used in less restrictive Asian markets, and its investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA will drive the development of euro-denominated stablecoins and bring new opportunities to the EU financial market.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
EU MiCA regulation may promote the development of euro-denominated stablecoins
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which will benefit compliant stablecoin issuers, such as Circle's EURC
MiCA regulation may lead to challenges for non-compliant stablecoin issuers, such as Tether's EURT, and even force them to exit the EU market
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU